Payments from the Electric Power Company of Montenegro (EPCG) to the Pljevlja Coal Mine for the environmental reconstruction of the Pljevlja Thermal Power Plant (TPP) have reached 80 million euros, according to payment orders obtained by the NGO Action for Social Justice (ASP).
ASP stated that EPCG’s payments to the Coal Mine amounted to around 31.5 million euros in the first half of the year, while by the end of August, payments for the environmental reconstruction project reached 49.3 million euros, bringing the total to more than 80 million.
The Pljevlja power plant has been completely shut down since April 1 and is expected to resume operation around November 15, depending on the completion of the ecological reconstruction and the relocation of the Ćehotina River, a project managed by the Coal Mine.
ASP raised concerns that any potential delay in restarting the plant could lead to higher electricity bills for consumers. They noted that, in a market already burdened by monopolistic and cartel pricing, such an increase would represent another heavy blow to citizens, especially vulnerable groups.
According to payment records, EPCG paid its subsidiary, the Coal Mine, 16.7 million euros in the first three months (while the plant was still operational), 5.7 million in April, 4.2 million in May, and 4.8 million in June.
At the end of last year, EPCG and the Coal Mine signed a four-year contract for the sale of over five million tons of coal for the operation of the Pljevlja plant. The contract includes a clause stating that advance payments made during the power plant’s shutdown—due to reconstruction and river relocation—will be treated as prepayments to be gradually offset over the contract’s duration.
This means that EPCG is currently financing both the final phase of the ecological reconstruction and the Coal Mine’s project to relocate the Ćehotina River, which is necessary for continued coal extraction.
EPCG previously announced it would need about 70 million euros to purchase electricity during the power plant’s shutdown. The Pljevlja TPP normally provides over one-third of Montenegro’s electricity.
The “turnkey” ecological reconstruction project, covering both design and works, was awarded in 2020 to a consortium led by the Chinese company Dec International, alongside local partners Bemax, BB Solar, and Permonte.
An advance payment of 10.8 million euros was made that same year. In 2022, payments amounted to 4.2 million, in 2023 more than 11.8 million, and by August 2024 over 13.7 million euros.
The original contract, worth about 54.5 million euros, was amended in February for an additional 3.5 million euros due to extra works. EPCG also launched a separate 15-million-euro tender for boiler adaptation to improve the reconstruction results, while additional funds are being used for district heating works in Pljevlja.
